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Some management and health considerations can substantially increase your profits. By Jill J. Dunkel In any industry, understanding and catering to your customer's needs is essential to increasing the profit margin. But if you're producing a calf that does not meet all the needs of the buyer, the marketing potential of that animal may be limited. A sizable percent of the profit may be left on the table. To get more for your calves, it helps to understand the factors that affect market pricing, says Dr. Darwin Yoder, a veterinarian for Pfizer Animal Health. "For starters, the sex of the cattle makes a difference. Steers typically bring $8 more per hundred than heifers, and bull calves are usually $8 to $12 per hundred back of steers. So by castrating your bulls, you're already getting more for your calves," he says. Next, consider the calves' health. Increasing profits may be as simple as adding a vaccination program to a cow/calf operation. The calves will be healthier and more marketable, and can put extra money in the rancher's pocket. "Many producers who do not vaccinate their calves are not realizing their full profit potential," according to Yoder. In today's market, those extra dollars can make or break an operation. The premium paid for vaccinated calves is proven. In a 1997 study on 500 pound calves, those receiving virus shots sold for 88c more per hundred and those with a pasteurella shot sold for 88c more per hundred than calves with no vaccinations. Calves administered both virus and pasteurella shots brought $1.28 per hundred more. This additional profit adds up, but still more can be realized, Yoder says. Preconditioning the calves, including a 45 day post-weaning period, will substantially increase the overall dollars paid for a calf. After analyzing 1,723 lots consisting of 200,000 plus calves sold through Superior Video Auction in 1997, researchers found considerable premiums paid for preconditioned calves. The calves enrolled in Superior's Vac 45 program, which involves backgrounding the calves for a minimum of 45 days after weaning, brought $3.89 more per hundred. Those participating in the Vac 34 program (which is not as stringent as the Vac 45 program) brought $1.61 per hundred more, and those calves which were not in the programs but had received some virus shots brought 72c more per hundred. "When you look at those figures, it really becomes cost effective to precondition calves. On a 600 pound calf, preconditioning can add about $21 per head. Then consider breed selection, castration and dehorning, and you could add a total of $50 per calf to your price. I don't know many people that would walk away from an extra $50 per head." How can a few shots and some time add so much value? "Disease occurs when disease challenge surpasses disease resistance. By increasing the resistance with proper vaccinations and decreasing the disease challenge by spreading out stress through preconditioning, you should end up with a healthy calf that buyers will pay extra for," Yoder explains. He recommends developing a health protocol program and incorporating it with management techniques to lower stress on the calves. This can be done at the ranch if the facilities and "know how" exist, or the calves can be preconditioned at a backgrounding yard. To combat health problems, Yoder recommends vaccinating calves against BRD, or Bovine Respiratory Disease. "To get the best immunity, give an initial dose followed by a booster." This can best be accomplished with the first dose administered three to four weeks before weaning and a booster given at weaning. If that is not practical due to the size of the ranch or other ranch management techniques, the first dose can be given at branding with a follow up dose at weaning. "Typically, 80 percent of the herd responds to the first dose of vaccine. However, a booster dose three to four weeks after the priming dose enhances the immunity of the herd," says Yoder. "Rarely do vaccines fail. Vaccination programs fail," he says. If you're not familiar with a vaccination program, get advice on the types of vaccines and vaccination administration. You can also follow preset programs, like the Vac 34 or Vac 45 programs offered by Superior Video Auction. In addition to vaccinations, preconditioning also involves tank breaking and bunk breaking calves. "Place one of your cull cows with the weaned calves for a short time. She will teach them to drink from a tank and eat from a bunk. By keeping calves full and watered, they will be more disease resistant." Yoder also recommends easing weaned calves into a ration. "They're used to eating grass or dry forage. Feed a lot of hay and slowly introduce a higher concentrate feed." Consider your circumstances and apply these profit increasing techniques where you can. Premiums of $21 to $50 per head can really make a difference on the bottom line, and you're producing a product designed to meet the buyer's needs. |
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